TKO Group Holdings, Inc.
TKO Group Holdings, Inc. Fundamental Analysis
TKO Group Holdings, Inc. (TKO) shows weak financial fundamentals with a PE ratio of 75.74, profit margin of 5.27%, and ROE of 5.60%. The company generates $4.4B in annual revenue with strong year-over-year growth of 67.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TKO's fundamental strength across five key dimensions:
Efficiency Score
WeakTKO struggles to generate sufficient returns from assets.
Valuation Score
ModerateTKO shows balanced valuation metrics.
Growth Score
ModerateTKO shows steady but slowing expansion.
Financial Health Score
ModerateTKO shows balanced financial health with some risks.
Profitability Score
WeakTKO struggles to sustain strong margins.
Key Financial Metrics
Is TKO Expensive or Cheap?
P/E Ratio
TKO trades at 75.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TKO's PEG of -10.86 indicates potential undervaluation.
Price to Book
The market values TKO Group Holdings, Inc. at 4.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.21 times EBITDA. This signals the market has high growth expectations.
How Well Does TKO Make Money?
Net Profit Margin
For every $100 in sales, TKO Group Holdings, Inc. keeps $5.27 as profit after all expenses.
Operating Margin
Core operations generate 22.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.60 in profit for every $100 of shareholder equity.
ROA
TKO Group Holdings, Inc. generates $1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TKO Group Holdings, Inc. produces operating cash flow of $1.04B, showing steady but balanced cash generation.
Free Cash Flow
TKO Group Holdings, Inc. generates strong free cash flow of $1.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.20 in free cash annually.
FCF Yield
TKO converts 5.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
75.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-10.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How TKO Stacks Against Its Sector Peers
| Metric | TKO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 75.74 | 21.66 | Worse (Expensive) |
| ROE | 5.60% | 1190.00% | Weak |
| Net Margin | 5.27% | -55754.00% (disorted) | Weak |
| Debt/Equity | 1.06 | 1.32 | Neutral |
| Current Ratio | 1.46 | 1.59 | Neutral |
| ROA | 1.47% | -202359.00% (disorted) | Weak |
TKO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TKO Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
180.56%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-88.27%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
363.35%
Industry Style: Growth, Technology, Streaming
High Growth